Is Company-Provided Life Insurance Enough?

A stable job offers many perks, including paid vacations, health insurance, and virtual happy hour with the team. That is part of what makes a long-term commitment attractive. About 57 percent of people believe that Employee benefits BC is the most important factor in deciding whether to take a job. Eighty percent also say they value benefits more than a pay raise.

You may be eligible to receive group life insurance as a perk for being an employee. You’re likely to have considered buying life insurance through your employer at one point in your career. Maybe it was your first job, and you just did it without thinking, or you still have employer-sponsored coverage, but you haven’t thought more about it.

Learn why you might want to consider buying your insurance policy. Three things to know about the differences between individual life insurance and employer-provided insurance.

Important Things To Know Buying Individual Or Company-provided Insurance

People will refuse to buy life insurance because competing goals or premium payments are not within their budget. That is the most common problem. Individual life insurance policies can be often inexpensive than the life insurance policies provided by your employer. Unlike employer-provided insurance, which has premiums and costs that increase annually, individual policies’ premiums will not rise as you age.

Employers offer life insurance policies that cover up to 1-2 times your annual income. If you’re single and don’t have dependents, this amount might be sufficient for your needs and desires. This amount may not be enough to cover your expenses if you have children or are married. Your ultimate goal should be to ensure your loved ones can continue their lives after your death.

The policy will also terminate if your job ends or the benefit is cancelled. That applies to all benefits, including your dental and health coverage. If your health deteriorates, it may not be easy to replace your life insurance. Your premiums could also be significantly higher. Your family can be protected financially by having your life insurance policy.You may want to read the full list here about the pros and cons of employer-offered insurance.

Employers try to balance affordability and coverage, as the company life insurance must cover all ages and socioeconomic backgrounds. Although this makes it easy to obtain life insurance through your employer, it can also mean that your life insurance will not be tailored to your needs. Group life insurance, for example, already has set amounts. That means you cannot add any riders in order to customize the coverage.

What Are The Benefits Of Purchasing Individual Life Insurance?
Are you unsure about the differences between individual and group insurance? In addition to your group life insurance policy, there are many benefits to buying individual life insurance. Term life insurance is the best option for most people because it is affordable and simple to understand. You can choose the coverage amount and duration of your term life insurance policy. It ensures that you will be covered for the entire term, regardless of what happens in your professional life.

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